A late swoon prompted by fears surrounding the UK bond market sent the Nasdaq and S&P 500 down for a fifth straight session on Tuesday. The Dow gave up most of its early gains but still closed higher Area.
Among the detractors during the session, gig economy stocks fell on concerns over increased regulation. Uber (UBER), Lyft (LYFT) and DoorDash (DASH) all closed lower.
Leggett & Platt (LEG) was another standout downtrend. A lowered forecast sent the stock to a fresh 52-week low.
Looking at the top, Amgen (NASDAQ: AMGN) rebounded on analyst comment, while DICE Therapeutics (DICE) jumped to a 52-week high on clinical trial data.
sector in focus
Regulatory concerns prompted the sale of gig economy stars like Uber (UBER) and Lyft (LYFT). The slides came as the Biden administration proposed policy changes that could result in gig workers becoming full-time employees.
“While independent contractors play an important role in our economy, we have seen in many cases employers misclassify their employees as independent contractors,” Labor Secretary Marty Walsh said in a statement. “Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.”
On the news, UBER fell about 10% while LYFT fell about 12%. DoorDash (DASH) was also down, down about 6%.
Outstanding Winner
Amgen (AMGN) was boosted by upbeat analyst commentary that sent the stock nearly 6% higher.
Morgan Stanley gave an optimistic view of the company’s AMG133 product, a potential treatment for obesity. Analyst Matthew Harrison argued that forthcoming data on the drug could be the first step towards a multi-billion dollar product.
Supported by the analyst’s note, AMGN rose $13.29 to close at $245.44. The rise helped the stock recoup more of the losses it posted in the first half of September when the company’s pipeline hit some stumbling blocks.
Overall, stocks have been a choppy performance in 2022, although the stock remains positive for the year. AMGN is currently up about 8% since the end of 2021, compared to sharp falls in the broader market.
Notable new high
The release of clinical trial data led to a massive surge in DICE Therapeutics (DICE) shares. The stock soared 62% to hit a new 52-week high.
The company announced results from a phase 1 study of its product DC-806 in psoriasis. The drug candidate achieved its proof-of-concept goal in the study.
DICE closed Tuesday’s promotion at $40, a gain of $15.35 for the day. Shares also hit a fresh 52-week intraday high of $45.99.
Notable new low
Leggett & Platt (LEG) lost ground after the company lowered its full-year guidance. Shares of the tech components maker fell 7% on the news.
LEG forecast EPS of between $2.30 and $2.45. This was below its previous guidance of $2.65 and $2.80. Analysts were looking for a figure around $2.71.
The company also issued a disappointing revenue guidance, saying it sees $5.1 billion to $5.2 billion overall. The consensus of the market experts aimed for a total of around USD 5.3 billion.
Pulled lower by the forecast, LEG fell $2.50 to close at $32.17. This contributed to a general downtrend that has characterized most of the past two months. During the session, shares also touched a 52-week intraday low of $30.28.
Looking for more of Wall Street’s biggest climbers today? Go to the On The Move section of Seeking Alpha.
